Floki Inu developers contemplate burning nearly 5 trillion FLOKI tokens (worth almost $55 million) to reduce the tax applied on each transaction.
FLOKI’s price reacted positively, surging 15% in a few hours.
The team behind the popular memecoin Floki Inu might burn its bridge tokens (4.97 trillion assets) and thus shrink the tax levied on each transaction to 0.3%. The maximum circulating supply of FLOKI will remain at 10 trillion assets even if the effort gets completed.
“We understand that the decision to burn the bridge tokens is a very significant (and permanent!) decision and the ETH chain has a higher percentage of circulating supply, so we would be happy to help large holders who want to bridge over to BSC do so manually before the burn,” the developers stated.
The proposal further displayed protection risks related to cross-chain bridges. Burning some of the tokens could reduce the chance of a potential “catastrophic impact,” the team added:
“In Floki’s case, an exploit on our main cross-chain bridge would have a catastrophic impact on the project since this bridge currently holds 55.7% of what FLOKI’s total circulating supply should be. This is a lot of tokens, and that’s more than enough to drain the project’s liquidity pools and essentially destroy the project if exploited.
The overwhelming majority of the voters have declared their support of the initiative.
The native token of the project – FLOKI – spiked by almost 15% shortly after the plan was aired. Currently, it trades at a 5-month high of $0.00001258 (according to CoinGecko’s data).
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